news, comment, analysis and data on the global business of credit trading and investing
Liquidity
The ability to sell an asset or unwind a position when necessary. Credit markets are much less liquid than other sectors of the financial markets such as major equities. Bid-offer spreads tend to be wide and the number of dealers in a particular credit or product is often small. Within the credit derivatives market, are by far the most liquid products, with bid-offer spreads usually only half of one basis point.
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